ABSTRACT
The contract will normally be capable of rescission where the vessel becomes a total loss prior to delivery. It is rare, however, for the buyer to enjoy an exclusive option in such circumstances, the contract usually providing for mutual rights of rescission in the event of a total loss. The NEWBUILDCON Form provides simply that, upon a termination by the buyer, the builder must repay the pre-delivery instalments plus interest. The contract may also stipulate that, upon its rescission, title to the buyer’s supplies shall pass to the builder. The effect of rescission is to terminate the builder’s bailment and to require it to deliver up the items in question to the buyer at the shipyard. The builder tendered the vessel for delivery on the contractual date but the buyer refused to accept the tender, alleging that she was not in a deliverable condition.
